Judge a business idea before you fall in love with it

People who want to work for themselves rarely have too few ideas: they have too many. The risk isn't running out, but starting with the first exciting one and finding out months later that it could never work. Before opening a project, give every idea six scores from 1 to 5.

1. Interest: do you really like it?

You will work on it in the evenings and on weekends, for months. If the topic doesn't interest you, you will quit at the first obstacle. You don't need a passion: it is enough not to get bored talking about it for an hour.

2. Demand: is anyone looking for it?

Check whether people already search for that product or service: Google searches, group discussions, competitor reviews. If nobody looks for it, you will have to convince people they need it, and that is the most expensive road.

3. Competition: is there room?

No competitors is usually a bad sign: maybe there is no market. Too many strong competitors, all with low prices, is another bad sign. The high score goes to a market with competitors but with an uncovered angle: a neglected audience, better quality, faster service.

4. Margin: is anything left?

Do a quick calculation: the price people pay today, minus costs, fees and shipping. If the margin is thin on paper, reality will be worse. Services have high margins but sell your time; products scale but have fixed costs and inventory.

5. Ease: can you start small?

How much does it cost to reach the first sale? An idea you can test with a few hundred euros and a few weeks beats one that needs a warehouse or a year of development. Starting small lets you make mistakes without getting hurt.

6. Difference: why you?

What makes you different from the others? A skill, an audience that already follows you, a taste, a supplier others don't have. Without a difference, your only lever is price, and on price the biggest player always wins.

How to decide

Add up the scores (30 at most):

• 24 and up (an average of 4): open a project and write a small business plan with the numbers;
• between 18 and 23 (an average of 3): work on the lowest score, it can often be improved;
• below 18: set it aside, with no regrets. Look at it again in six months.

Write down the scores and the reason for each. When the next exciting idea arrives, you will have a yardstick to compare it with.

In short

• Six scores: interest, demand, competition, margin, ease, difference.
• Look for a market with competitors, but with an uncovered angle.
• Prefer ideas you can test with little money.
• 24 out of 30 and up: make it a project.